Recent Tax Law Changes That Could Impact Your Business Structure

Recent tax law changes can affect more than your tax bill — they can also influence whether your current business structure is still the right fit.

Changes under the One Big Beautiful Bill Act (OBBBA) have created new opportunities for business owners, making it a good time to review your entity and tax strategy.

Pass-Through Tax Benefits

The Qualified Business Income (QBI) deduction remains an important consideration for many owners of pass-through businesses, including S corporations, partnerships, and sole proprietorships.

Changes to the deduction may create additional opportunities for eligible business owners beginning in 2026.

Increased Business Deductions

The OBBBA also expanded certain deductions, including restoring 100% bonus depreciation for qualifying property and increasing the Section 179 expense limit. For businesses investing in equipment, technology, vehicles, or other assets, these changes could have a significant impact on tax planning.

Is Your Structure Still Working?

As your business grows, the structure that worked when you started may no longer be the most effective. Changes in profitability, ownership, investments, and growth plans can all affect whether an LLC, S corporation, partnership, or other structure makes sense.

Tax law changes are a good reason to review, not necessarily change, your business structure.

A periodic review with your tax and legal professionals can help ensure your entity continues to support your tax strategy, liability protection, and long-term goals.

The right structure should support where your business is going — not just where it started.